Banks Score Big from New Tax Law: $2.5 Billion in One Quarter

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“Overall, the combined earnings of Goldman and the four major national banks — JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Bank of America Corp. — increased by more than $2.5 billion in the quarter because of the lower corporate rates under the tax-overhaul law enacted in December. … That amount is only a modest-size chunk of the banks' total first-quarter earnings -- less than 10% of their combined net income applicable to common shareholders. But it comprises a major chunk of their year-over-year earnings growth.”